The founder and CEO of Jurat, Mike Kanovitz, has defended his blockchain protocol against potential criticism, arguing that on-chain legal enforcement is necessary for the mass adoption of cryptocurrencies. Recently, a U.S. District Court used Jurat’s on-chain enforcement tool to lock several individuals out of their crypto accounts. These individuals had been sanctioned for money laundering and extorting cryptocurrency payments for North Korea’s weapons program. This judicial order marked the first time that such technology had been used.
Jurat blockchain was launched in late 2022 and is a fork of the Bitcoin blockchain. The protocol connects blockchain nodes with court dockets to enforce court orders. Kanovitz acknowledges that the technology may face criticism from supporters of decentralization. He acknowledges that “Some people are going to claim to be philosophical purists and hate on it. I get that.” However, he believes that on-chain legal enforcement can provide the necessary due process protections for digital assets, which will be crucial for mainstream adoption.
According to a report by blockchain security firm Beosin, in the first half of 2023, $656 million in cryptocurrencies were lost to scams, hacks, and rug pulls. This highlights the need for effective law enforcement measures in the crypto space. Kanovitz argues that on-chain legal enforcement can help combat the lawlessness that scares away potential adopters and draws the ire of government officials. He believes that it can also unlock incredible utility for commerce.
Traditionally, courts have had limited means to freeze and seize crypto funds. One common tactic has been to order centralized crypto exchanges to freeze funds or provide identifying information about suspects. However, Jurat’s on-chain enforcement tool works differently. It connects Jurat’s blockchain and software nodes with the user’s chosen court. During a lawsuit, each party provides the court with a competing hash for what they want the court to do. When a ruling is made, the court simply pastes the hash of the winning side, and the software nodes execute the order autonomously by accessing the online court docket.
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Currently, Jurat’s tool only works in the United States and on the JCT blockchain. However, Kanovitz hopes to expand its technology to other Ethereum Virtual Machine-compatible blockchains in the future.
In conclusion, Mike Kanovitz, the founder of Jurat, defends his blockchain protocol by emphasizing the need for on-chain legal enforcement for the mass adoption of cryptocurrencies. He believes that due process protections for digital assets are crucial and that on-chain enforcement can combat the lawlessness in the crypto space. With the increasing number of scams and hacks, effective law enforcement measures are necessary to instill trust and encourage mainstream adoption. While facing potential criticism, Kanovitz remains optimistic about the utility of on-chain legal enforcement and aims to expand its technology to other blockchains in the future.
